Demand for £50 notes 'fuelled by lack of faith in banks'

mattheman · 7 Dec 2009 at 12:06

whats the point of keeping the money in the bank when the returns are so low.

Two features of the current situation strike me as most relevant in explaining this development: first, lower levels of public confidence in the banking system and second, low interest rates," he said.

http://www.telegraph.co.uk/finance/...-notes-fuelled-by-lack-of-faith-in-banks.html

SiriusB · 7 Dec 2009 at 12:14

My money doesn't earn interest if it is being hoarded at home.

Tefal · 7 Dec 2009 at 12:15

What are the odds your insurance company would believe you if it burnt in a house fire?

titchard · 7 Dec 2009 at 12:15

mattheman said:
whats the point of keeping the money in the bank when the returns are so low.

Because I don't own a garage sized super-safe to keep my money in like a bank does, Mr. RSS Feed.

Rich

bledd · 7 Dec 2009 at 12:16

matt, do you scour the newspaper websites for topics to post everyday?!

MickeyFinns · 7 Dec 2009 at 12:16

I really should start reading who a thread has been started by before I open it.

Tefal · 7 Dec 2009 at 12:17

titchard said:
Because I don't own a garage sized super-safe to keep my money in like a bank does, Mr. RSS Feed.

Rich

Don't own a teleportation device or national distribution network if i need to get some extra cash while out either.

titchard · 7 Dec 2009 at 12:24

Tefal said:
Don't own a teleportation device or national distribution network if i need to get some extra cash while out either.

Me neither, I am thinking that maybe, just MAYBE their are more benefits than just interest rates from the bank...

Rich

growse · 7 Dec 2009 at 12:30

Most home insurance policies only cover cash up to £1k iirc - could be wrong now though.

So if you've got a few grand stuffed under the mattress and your house burns down, you're screwed.

If the bank burns down, you're not.

Angilion · 7 Dec 2009 at 12:34

Hmm...which is safer and more convenient?

Option 1: Money backed by the government and either in a strong safe or not existing in any physical form. Money I can change to cash in my hand at any one of countless thousands of places, or spend using a relatively secure card.

Option 2: Cash hidden someone in my house, where it can be burnt, stolen, ruined by stuff spilled on it, etc, and where I can't spend it. Or cash carried on me, which can be stolen a lot more easily. All in £50 notes, which can't be spent at all in many places.

The only benefit to hoarding cash is if you get a thrill from counting it.

mattheman · 7 Dec 2009 at 12:34

For one the interest is low 2 the money can be track by the government etc... if you need to dig into your savings your earn no interest. hoarding cash is one of the issues with deflation.

titchard · 7 Dec 2009 at 12:37

mattheman said:
For one the interest is low 2 the money can be track by the government etc... if you need to dig into your savings your earn no interest. hoarding cash is one of the issues with deflation.

How can the government track it?

The bank offers you more than just interest rates, which I agree are low - but I don't own a massive safe, have a network of ATMs, a magic card that links my mattress money to a shop and the backing of a government if it goes belly up.

It is a pathetic scheme put forward by people who don't understand banking.

Rich

titchard · 7 Dec 2009 at 12:38

Angilion said:
The only benefit to hoarding cash is if you get a thrill from counting it.

Or recreating Noels House Party in your shower cubicle.

Rich

Cosimo · 7 Dec 2009 at 12:38

What people want is more £5 notes.

Tefal · 7 Dec 2009 at 12:38

How is "the interest is low" a reason to horde?

I'd rather get a few extra quid than nothing at all and oh noes the government tracks the money?

You'd have thought this would have lead to mine and several thousand other peoples arrests by now.

oh wait no once I take the money out the machine they can't/not worth the expense to track what I do with it.

(if you say yes they can through serial numbers etc, they can do that when you withdraw it to hide it under your bed too)

mattheman · 7 Dec 2009 at 12:39

titchard said:
How can the government track it?

The bank offers you more than just interest rates, which I agree are low - but I don't own a massive safe, have a network of ATMs, a magic card that links my mattress money to a shop and the backing of a government if it goes belly up.

It is a pathetic scheme put forward by people who don't understand banking.

Rich

Go tell that to countries were they had a depression iam sure they dont understand. btw its the finance guys that are doing it not joe public, just letting you know.

Tefal · 7 Dec 2009 at 12:41

mattheman said:
btw its the finance guys that are doing it not joe public, just letting you know.

Source?

mattheman · 7 Dec 2009 at 12:41

Tefal said:
Source?

no thanks.

Tefal · 7 Dec 2009 at 12:44

mattheman said:
no thanks.

So that's a "pulled from mattheman's gaping anus" for the source then?

titchard · 7 Dec 2009 at 12:44

mattheman said:
Go tell that to countries were they had a depression iam sure they dont understand. btw its the finance guys that are doing it not joe public, just letting you know.

We're not on about other countries though, we are on about OUR county - so that has no relevance here, and "Finance guys" means nothing to me. I did a business degree with some financial elements - so now I am a "Finance guy".

If you thought for more than one second while you copied and pasted the link, that the bank does actually do a lot more for you than interest you'd see it's a stupid idea.

Just put up with a lower interest rate, or move banks to gain a better one for the time being with the nice thought you have that whole banking structure of safes, ATMs and access that having a shoebox of bills under your bed doesn't have.

My savings have a SHOCKING interest rate at the moment, but shopping around I can't get an account with the same features so I am trading off the interest rate for accessibility - and I really, REALLY don't care right now.

Rich